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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of EchoStar Corporation - SATS

1. Pomerantz is investigating EchoStar for potential securities fraud allegations. 2. FCC is scrutinizing EchoStar’s compliance for nationwide 5G network. 3. EchoStar missed a $326 million interest payment on spectrum secured notes. 4. Concerns over resource deployment hampered EchoStar's Boost Mobile operations. 5. EchoStar is considering a Chapter 11 bankruptcy filing.

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FAQ

Why Very Bearish?

EchoStar’s failure to make interest payments and potential bankruptcy seriously undermine investor confidence, similar to historical cases where liquidity issues led to stock collapse.

How important is it?

The allegations and financial issues present a direct threat to EchoStar’s market stability, influencing investor sentiment significantly.

Why Short Term?

The immediate market reaction to EchoStar’s financial troubles will impact SATS in the near term as investors reassess risk.

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NEW YORK, June 28, 2025 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of EchoStar Corporation (“EchoStar” or the “Company”) (NASDAQ: SATS).  Such investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980. The investigation concerns whether EchoStar and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.  [Click here for information about joining the class action] On May 12, 2025, the Wall Street Journal published an article entitled “FCC Threatens Charlie Ergen’s Hold on Satellite, 5G Spectrum Licenses”.  The Wall Street Journal reported, in relevant part, that “[t]he Federal Communications Commission told [Charlie] Ergen, the chairman and co-founder of network operator EchoStar, that the agency’s staff would investigate the company’s compliance with federal requirements to build a nationwide 5G network” for its Boost Mobile subsidiary, noting that “[t]he company has spent years wiring thousands of cellphone towers to help Boost become a wireless operator that could rival AT&T, Verizon and T-Mobile, but the project has been slow-going.”  On this news, EchoStar’s stock price fell $4.01 per share, or 16.58%, to close at $20.18 per share on May 12, 2025.  Then, on May 30, 2025, EchoStar disclosed in a filing with the U.S. Securities and Exchange Commission that the Company had “elected not to make an approximately $326 million cash interest payment due on May 30, 2025 (the ‘Interest Payment’) with respect to our 10.75% senior spectrum secured notes due 2029 (the ‘2029 Spectrum Notes’)”, stating that the “uncertainty over our spectrum rights has effectively frozen our ability to make decisions regarding our Boost business, including continued network buildout and adversely impacts our ability to implement and adjust our overall business plan and requires us to re-evaluate the deployment of our resources.”  On this news, EchoStar’s stock price fell $2.44 per share, or 12.1%, to close at $17.73 per share on May 30, 2025.  Then, on June 6, 2025, the Wall Street Journal reported that “EchoStar is considering a chapter 11 bankruptcy filing,” citing “people familiar with the matter[.]”  On this news, EchoStar’s stock price fell $1.49 per share, or 8.52%, to close at $15.99 per share on June 9, 2025. The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, London, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com. Attorney advertising. Prior results do not guarantee similar outcomes. CONTACT:Danielle PeytonPomerantz LLPdpeyton@pomlaw.com646-581-9980 ext. 7980      

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